SPX Credit Spread Trader

Quote from jackbyrd:

Why don't you answer the specific questions sir? Did you or did you not trade these spreads prior to 2003? Did you have one of these positions on in October 1998, October 1997, January 2001, April 2001, July 2002, October 2002, March 2003, etc, etc?

You may feel that this is not a contribution to this thread, but you are very clearly mistaken. Since the majority of your followers did not trade these spreads prior to the last year or two years, it is clear they have no clear concept of what occurs in illiquid fast markets in which a half developed hedging strategy will not work.
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jack

I don't see how this is relevant.

Clearly even a monkey could see the difference between a strong trending market and todays conditions.

Sure corrections occasionally happen but rarely in these kinds of markets are they severe as 2000 or 87 those where totally different environments and I think the readers of this thread are bright enough to see this don't you think?
 
Quote from jackbyrd:

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No sir, once again you fail to see the point here. I suppose 200 pages filled with fawning support about a strategy that more experienced traders cringe over will do that to a person.

Again, do you believe that you are experienced enough as a trader to manage these positions in a more challenging market (to premium sellers). Did you trade these positions prior to 2003? Why did you not know the appropriate hedge ratios for ES to OEX before someone on this thread calculated this for you?
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I was in the market 2000-2003 and I know each market offers its own risk/reward. Each individual needs to find what works for them and in this type of market (2004/2005) I think Coach's way otm condors have good risk/reward profiles. If you don't like it buzz off
 
Quote from DonnaV:

I was in the market 2000-2003 and I know each market offers its own risk/reward. Each individual needs to find what works for them and in this type of market (2004/2005) I think Coach's way otm condors have good risk/reward profiles. If you don't like it buzz off
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Unless you are OptionCoach's personal spokesperson, I fail to see how your comments and opinions are pertinent to the aforementioned questions.

As you were...
 
If you feel they are exactly the same then why should I start a contra journal since this is the way I am more comfortable trading. Also, it is hard to enough to trade options and day-trade futures and do this and several other free online sites, now you want me to start a contra-journal. ANyone following can simply treat each trade as a debit.

You claim I was having cardiac arrest but you were not here sitting next to me. I have been trading a long time and stress is simply a part of trading. Just because I was stressed does not mean the trading approach is wrong. I doubt you can trade any strategy without any stress. Moreover I like being able to take in premium monthly to reinvest those proceeds. It fits my trading style.

I understand why people do not like this strategy and that is fine. Every strategy has pros and cons. Are you telling me this strategy is pure CON. It is not the strategy at all. It is the risk management.But I have to trade the way that best suits my risk management and trade management style. Insults certainly do not make your points any clearer. Since this is a strategy that does not suit you, I can understand if you have no interest in it.

I thank you for your input and welcome you to join in on the discussion. But if your sole purpose is to claim I do not know what I am doing and I should trade another strategy, then this thread is not for you.
Quote from Maverick74:

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I did not trade these in 2002 and why does that matter? If I did have one of these positions in any period you are talking about I would not be wiped out because I use at the most 50% of my trading capital for such strategies and even a large sudden move ITM would not cause me to reach the maximum value of the spread. So would I take a loss on a major price swing greater than what we just witnessed? Yup, but I can manage the risk such that I can still have profits.

Remember this is not an IRON CONDOR thread. SO if the market is trending lower or crashing, I would take the puts positions off and simply trade the other side. If I have to adjust to take limited losses then that is the risks I accept. What difference would it make if I traded these then or not. RIght now is a great market for these spreads and if we start crashing I will simply sell OTM call spreads and ride all the way down.

Stop insulting everyone here. (remember your Church comment). I have no followers. I tell people to practice good risk management. If the market is crashing the SPX does not become illiquid such that no adjustments or positions can be closed. You do not like the strategy and your point was made. No need to go on any longer, especially since you have such low regard for the people here.

I traded put ratio spreads all year last year and part of 2003. Did quite well because of the stocks I selected and my risk management approach. Especially on GOOG. They have significantly more risk than credit spreads since they have naked puts. Does that clear up whether I have traded something similar last year? Did I trade during the bad years of 1973? Nope.

THanks for your concern but I get turned off by people who talk down to me and insult other people in this thread. And lose the sir, I am probably younger than you judging by your tone. You are free to ignore this thread. I am not putting a gun to anyone's head and I have never underplayed the risks. This is not a beginner strategy.


Quote from jackbyrd:

Why don't you answer the specific questions sir? Did you or did you not trade these spreads prior to 2003? Did you have one of these positions on in October 1998, October 1997, January 2001, April 2001, July 2002, October 2002, March 2003, etc, etc?

You may feel that this is not a contribution to this thread, but you are very clearly mistaken. Since the majority of your followers did not trade these spreads prior to the last year or two years, it is clear they have no clear concept of what occurs in illiquid fast markets in which a half developed hedging strategy will not work.
More...
 
Because raises a good point which you ignore. Now you can go back to the other threads since you have made your point.

Quote from jackbyrd:

Unless you are OptionCoach's personal spokesperson, I fail to see how your comments and opinions are pertinent to the aforementioned questions.

As you were...
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Quote from optioncoach:

If you feel they are exactly the same then why should I start a contra journal since this is the way I am more comfortable trading. Also, it is hard to enough to trade options and day-trade futures and do this and several other free online sites, now you want me to start a contra-journal. ANyone following can simply treat each trade as a debit.

You claim I was having cardiac arrest but you were not here sitting next to me. I have been trading a long time and stress is simply a part of trading. Just because I was stressed does not mean the trading approach is wrong. I doubt you can trade any strategy without any stress. Moreover I like being able to take in premium monthly to reinvest those proceeds. It fits my trading style.

I understand why people do not like this strategy and that is fine. Every strategy has pros and cons. Are you telling me this strategy is pure CON. It is not the strategy at all. It is the risk management.But I have to trade the way that best suits my risk management and trade management style. Insults certainly do not make your points any clearer. Since this is a strategy that does not suit you, I can understand if you have no interest in it.

I thank you for your input and welcome you to join in on the discussion. But if your sole purpose is to claim I do not know what I am doing and I should trade another strategy, then this thread is not for you.
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Option Coach, I'll just come out and say it then. No need to keep dissecting this strategy. I think you came to this website to sell something. And the fact that you eluded to other sites you post on, only reinforces this view. I have a problem with people who are trying to sell the oldest trick in the option book, the old iron condor to the ignorant public. Are you trying to sell books, seminars, newsletter? Which one is it? Or are you trying to raise money?

If you are honest about it, I'll give you your kudos and bid you good luck. If you are not, well, I will start a thread and lay out the exact premise behind the con game on another thread. There are many folks on ET that do this and they have been driven off this site. I think what you are doing is unethical. If you want to sell something, just come out and say it. Also, why don't you list these other sites you are using for the same purpose?

Now maybe I am wrong here. I accept that. But I have been on these boards for 3 years and have traded for 9, so I know the game pretty well by now. I'm going to go with my gut instincts here. They haven't let me down yet.
 
Way off base here Mav. If Coach is gonna start trying to sell something he sure is taking a long time getting to it. Read thru the thread, there is no effort to sell anything. Afew of us ahve bought his book, big deal, he did not pimp it.

Cody

PS if you do not agree with this stratagy fair enough, but the Coach has laid out the pro's and con's.
 
I am sorry to burts your bubble poor MAV:

1. I have nothing to sell you at all.

2. I have no option trading newsletter. I believe the old adage that if I have a system I make more money trading it then selling it in a crappy newsletter. That is why I do not mind doing this for educational purposes because no matter anyone is willing to pay for my knowledge it is peanuts compared to what I can make trading.

3. I wrote an option trading book, but please show me where I mention it again and again or even push it here? 90% of the people here do not even know I have a book I bet. Moreover the book does not even cover this strategy.

4. The "other" site I mention? YAHOO GROUP under optiontradingcoach. Guess what... YAHOO is a free group with over 1900 members where i sell... absolutely nothing. Another site? YAHOO message boards.... free as well. The last site I frequent a lot....another Yahoo Group run by Chris Smith which is free. All these sites have beginners and market makers all sharing knowledge for free.

5. I have a weekly radio show. I do not get paid for doing it. Sponsors pay my costs so it is .... absolutely free. I have been doing it for 6 weeks now. I mentioned it in the beginning but have not said anything about it in 4 weeks or so. Also, whether you listen to it or not, I make nothing.

6. Do I manage money? Yup. Do I need to raise money here? Nope. SEC rules forbid it anyway. And my business partner and I are dealing with overseas institutions to avoid SEC regulations and registration. I actually do not want any clients here in the US nor do i want any individual clients. So I have no desire to raise any money here whatsoever.

7. Why do i do this then?:

a. When I started trading there was no internet and I learned on my own and lost a lot of good money on bad trades. I want to provide others forums where they can ask questions and learn before making the same mistakes.

b. I learn quite a bit from the exchange of conversations. In the Yahoo groups I am in there are a few former floor traders and market makers who provide different insights and experience that helps me as much as I can help other traders.

c. I like to fill the time during the day when I am not trading and these boards are a great place to find like-minded individuals.

d. I am actually a great person who enjoys giving. I tutor kids when I can, I volunteered at the Boys & Girls Club all 4 years of college and volunteered at a Woman's Shelter in New Orleans all 3 years of law school working with kids. I do not feel the need to be paid for offering information and helping others when I get something out of it and when i wished I had the same access when I was starting out.

e. I had a mentor who took me under his wing with stocks when I was in college and I am forever greatful for the path he lead me on although it took me a while to get there. I want to provide the same outlets for other traders as well.

So MAV, sorry to burst your bubble but you are wrong about me and that is why I get defensive. Since there is no evidence I ever tried to sell, solicit or SPAM, I do not like that you discredit my good deeds and claim I have some unethical purpose when in fact you can find no evidence to support that.

It does not matter "how well you know the game" You don't know me. I have provided a glimpse into my life which I hope clarifies things.


Quote from Maverick74:

Option Coach, I'll just come out and say it then. No need to keep dissecting this strategy. I think you came to this website to sell something. And the fact that you eluded to other sites you post on, only reinforces this view. I have a problem with people who are trying to sell the oldest trick in the option book, the old iron condor to the ignorant public. Are you trying to sell books, seminars, newsletter? Which one is it? Or are you trying to raise money?

If you are honest about it, I'll give you your kudos and bid you good luck. If you are not, well, I will start a thread and lay out the exact premise behind the con game on another thread. There are many folks on ET that do this and they have been driven off this site. I think what you are doing is unethical. If you want to sell something, just come out and say it. Also, why don't you list these other sites you are using for the same purpose?

Now maybe I am wrong here. I accept that. But I have been on these boards for 3 years and have traded for 9, so I know the game pretty well by now. I'm going to go with my gut instincts here. They haven't let me down yet.
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Quote from codyhopkins:

Way off base here Mav. If Coach is gonna start trying to sell something he sure is taking a long time getting to it. Read thru the thread, there is no effort to sell anything. Afew of us ahve bought his book, big deal, he did not pimp it.

Cody

PS if you do not agree with this stratagy fair enough, but the Coach has laid out the pro's and con's.
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Clearly this is not the case sir. In fact, it appears the OptionCoach made this his first task upon arriving at EliteTrader. In the book review section, you will find this post:

"My name is Philip Budwick and I am one of the author's of the Option Trading Handbook. I am also online here on in the forums under the handle "optioncoach" and I am available if you have any questions regarding the book in addition to my participation on the boards under Options and Journals.
My book is not intended for the pure beginner in option trading although the first chapter is an excellent overview of risk and trade management for any level trader. Although the book asssumes you have a basic knowlegde of option strategies, it does review the key elements of option trading (time decay, volatility, synthetic positions) and many basic and advanced strategies).

The main purpose of the book is to provide a detailed resource of adjustment strategies to make to stock or option positions using calls and/or puts to lock in a profit, limit your risk or hedge your returns. Most books teach option strategies but hardly cover follow-up steps when the positions either moves against you or as expected. This book is intended to provide that added detail and covers long stock, short stock, calls, puts, spreads, combinations and many more positions and details different trade adjustments that can be made using options.

The goal is show how options can be used as risk management tools in order to better manage your investments. I hope you find the book useful and I wanted to make myself available for any questions or comments regarding the book or option trading in general.

Regards,

Phil "
 
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